PEARL RIVER, NY – MARCH 1, 2017 – Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the fourth quarter ended December 31, 2016.
The Company reported revenues of $7.8 million, for the fourth quarter ended December 31, 2016, an increase of 7% compared to $7.3 million in the comparable 2015 period. The revenue increase in the quarter is primarily related to an increase in the volume of certain refrigerants, offset by a reduction in service sales. Gross margin in the fourth quarter of 2016 was 13% compared to 19% in the prior year period primarily due to a change in sales mix in 2016 when compared to 2015. Net loss for the quarter was $1.9 million, or ($0.05) per basic and diluted share, compared to a net loss of $1.0 million, or ($0.03) per basic and diluted share, in the fourth quarter of 2015.
In December 2016, the Company raised $48 million of net proceeds through an underwritten public offering, which was partially utilized to pay down all of its existing revolving credit facility, resulting in a cash balance of $34 million as of December 31, 2016.
For the year ended December 31, 2016 Hudson achieved record revenues of $105.5 million, a 32% increase compared to $79.7 million in the comparable 2015 period. The increase is primarily related to a higher selling price of certain refrigerants and higher volumes of certain refrigerants sold. Gross margin increased to 29% for full year 2016 compared to 23% for 2015. Net income for 2016 was $10.6 million, or $0.31 per basic and $0.30 per diluted share, compared to $4.8 million or $0.15 per basic and $0.14 per diluted share in 2015.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “2016 was another strong year for our Company as demonstrated by record revenues, increased gross margins and significantly improved profitability. Our full-year results are reflective of our strong nine-month refrigerant season, during which we continued to benefit from increases in the average selling price of R-22 refrigerant. The fourth quarter is historically our slowest portion of the year, as volume demand for refrigerants falls off.”
Mr. Zugibe continued, “As a leading provider and reclaimer of refrigerants, we believe we are well positioned to continue to capitalize on the opportunities we’re seeing with the phase out of R-22 and to take advantage of the industry dynamics that will develop with the anticipated phase down of next generation HFC compounds expected to begin in 2019. We, along with others in our industry, believe a strong refrigerant reclamation program is essential to fulfilling demand as production of legacy refrigerants is phased out, but the equipment that requires these gases remains in operation. With our long term experience in the industry, proprietary technology and industry relationships, we are uniquely positioned to assist customers as they adapt to the evolving refrigerant marketplace.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss the fourth quarter results today, March 1, 2017 at 5:00 P.M. Eastern Time.
To access the live webcast, log onto the Hudson Technologies website at www.hudsontech.com, and click on “Investor Relations”. To participate in the call by phone, dial (877) 407-9205 approximately five minutes prior to the scheduled start time. International callers please dial (201) 689-8054.
A replay of the teleconference will be available until April 1, 2017 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 10262.